Dan put the below trade on about an hour ago, live, in a webinar for Ally Invest.

Trade: With SPX around 2554 at about 11:40 central,bought1 Nov 102570 Calland bought 1Nov 102530 Put, and sold 1Oct 272570 Call and sold 1Oct 272530 Put. Total debit for this live trade,11.05 . Selling Expiration that expires in 11 Days and buying the expiration that expires in 25 days.

Dan’s 4 Step Risk Management Plan for this trade:

Step 1– Set up:Details are up above next to Trade.

Step 2– Risk Management: 8% Profit and 10% Max Loss on risk capital of $1105. Will have in order to take off for $11.90 Credit , a profit of about 8%. If spread I paid $11.05 for goes under $9.50 , I would get out of the trade .

Note: Beginner Traders would only deal with Step 1 and 2. Once you have done 5-6 Double Calendars and understand them, then I would deal with Step 3 and 4.

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IMPORTANT NOTICE!
The information contained on this website is for educational purposes only: no representation is being made that the use of any trading strategy or trading methodology will generate guaranteed profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading options. Only risk capital should be used to trade. Trading options is not suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Please review the document- http://somurl.com/KnowYourRisk before trading options.